How Federal Policies Are Shaping the City’s Future
The nation’s capital, traditionally shielded from economic downturns due to its reliance on government employment and federal contracts, is currently experiencing a significant slowdown.
This shift is largely attributed to policies implemented by President Donald Trump’s administration, particularly the substantial reduction of the federal workforce led by the Department of Government Efficiency (DOGE).
Since Trump took office, more than 200,000 federal worker positions have been eliminated, with an additional 75,000 employees accepting buyouts, according to ABC News. These buyouts were offered by various federal agencies as part of the administration’s efforts to reduce the size of the federal workforce.
These extensive layoffs have profoundly impacted Washington, D.C.’s economy, leading to decreased consumer spending and a weakened local business environment, according to Yahoo Finance.
Downtown Decline and Business Struggles
The once-thriving business districts of downtown D.C. have seen a noticeable drop in foot traffic, with many storefronts closing or struggling to stay open.
A report from the D.C. Office of the Chief Financial Officer projects that a 21 percent decrease in federal employment could result in the loss of 40,000 local jobs, a $1.01 billion decline in revenue by 2029.
Remote workers previously spent approximately $127 weekly near their workplaces, representing a notable loss for these businesses.
In response to these challenges, some local businesses have begun offering free perks and services to federal workers affected by layoffs and uncertainty.
Housing Market Ripples
The impact is also hitting the housing market.
The Washington, D.C., metro area has seen a 56 percent increase in home listings compared to the previous year, surpassing the national increase of 28 percent. This surge is attributed to both an influx of new listings and a slowdown in buyer activity, leading to a 1.6 percent year-over-year drop in median list prices.
For Howard students, these housing market dynamics may lead to increased rental costs and limited affordable housing options in an already tight market. The university estimates annual housing expenses at $12,380 but students may face challenges securing affordable accommodations with rising demand and potential rent increases.
“The budget cuts and Trump’s policies have forced Howard to increase housing expenses, so you can’t really blame them,” said Destinee Osei Terry, a sophomore criminology major.
Job Market and Internship Woes for Howard Students
Howard students, particularly those pursuing careers in policy, law and federal contracting, face shrinking job and internship opportunities.
“As an architecture major, I’ve noticed that many architecture firms—and the general job market—tend to favor white applicants. Without DEI initiatives, especially for Howard students in the D.C. metropolitan area, we are often overlooked rather than sought after,” Jahnesa Jones, a sophomore architecture major from Virginia said.
Hiring freezes and budget cuts in government agencies have limited entry-level positions and internships, making it harder for recent graduates to secure employment in traditionally stable sectors.
Looking Ahead: What Can Be Done?
Despite these challenges, advocacy groups, local policymakers and D.C.-based businesses are calling for increased investments and legislative actions to reinvigorate the city’s economy.
For Howard students, staying informed, engaging in advocacy efforts and exploring alternative career paths may be crucial in navigating this economic uncertainty.
“It’s important for us as students to stay informed because the Trump administration is constantly trying to take away our rights,” Terry said.
Copy edited by Aniyah Genama
